# 2025-24272: Feds Undo Child Care Rules: More Flexibility or Just Less Hassle? 2025-24272, Restoring Flexibility in the Child Care and Development Fund (CCDF), is a Federal Register proposed rule from Health and Human Services Department published 2026-01-05, effective 2026-03-07; deemed significant under Executive Order 12866 (as of 2026-06-08). - Canonical: https://policyrisk.com/federal-register/2025-24272 - As of: 2026-06-08 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Document number: 2025-24272 - Title: Restoring Flexibility in the Child Care and Development Fund (CCDF) - Type: Proposed Rule - Agencies: Health and Human Services Department - Citation: 91 FR 207 - Published: 2026-01-05 - Effective: 2026-03-07 - Comments close: not stated - Significant: yes (FR_METADATA) - Touches household money: no - Regulation identifier numbers: 0970-AD20 - Last updated: 2026-06-08 ## In one line Feds Undo Child Care Rules: More Flexibility or Just Less Hassle? ## Summary The government wants to make it easier and cheaper for states to run child care programs by rolling back some new rules from 2024. Families, child care providers, and states will see changes like no more strict limits on family co-pays and more flexible payment methods for providers. Comments on these changes are open until February 4, 2026, so everyone has a chance to weigh in before the new rules take effect. ## Abstract The Department of Health and Human Services, Administration for Children and Families proposes to amend the Child Care and Development Fund (CCDF) regulations (45 CFR part 98) to reduce costs and burden for states and territories administering the CCDF program. It proposes rescinding the requirements to limit family co-payments to 7 percent of family income, to provide some direct services through grants or contracts, to pay providers based on child's enrollment, and to pay providers prospectively that were added to the CCDF regulations in the March 2024 final rule, Improving Child Care Access, Affordability, and Stability in the Child Care and Development Fund (CCDF) (89 FR 15366). The docket on https://www.regulations.gov will include a plain language summary of the NPRM as required by 5 U.S.C. 553(b)(4). ## Effects PRIA read - 7% Family Co‑pay Cap Removed: mixed, medium. The rule would remove the federal requirement that family co-payments for CCDF may not exceed 7 percent of family income (Sec. 98.45(l)(3)). States, Territories, and Tribal Lead Agencies would regain flexibility to set sliding fee scales; the proposal would become effective 60 days after a final ru… - Grants/Contracts Requirement Rescinded: benefit, low. The rule would rescind the March 2024 requirement that States and Territories must use some grants or contracts to provide direct CCDF services (Sec. 98.30(b)(1)), including for infants and toddlers, children with disabilities, and underserved areas. Parents could continue to use vouchers/certifica… - Prospective Provider Payments Repealed: cost, medium. The rule would remove the March 2024 requirement that providers be paid prospectively and instead allow States and Territories to pay either prospectively or retrospectively; when paid retrospectively, the NPRM would require payment within 21 calendar days of receipt of a complete invoice (the 2016… - Enrollment‑Based Payment Requirement Removed: mixed, medium. The rule would rescind the requirement that providers be paid based on a child's authorized enrollment rather than attendance (Sec. 98.45(m)(2)) and would restore multiple options from the 2016 rule (e.g., pay based on enrollment, pay if attendance is ≥85% of authorized time, pay if absences ≤5 day… - Estimated Federal Cost Savings: benefit, low. HHS estimates this NPRM would generate $6.1 million in annualized cost savings at a 7 percent discount rate in perpetuity (discounted to 2024), and over 2025–2029 it reports annualized transfers of about -$23.4 million (3% discount) and -$22.8 million (7% discount) and annualized costs of about -$6… ## Related documents - [2026-20447](https://policyrisk.com/federal-register/2026-20447): Transparency in Coverage, 2026-10-06 - [2026-20281](https://policyrisk.com/federal-register/2026-20281): Global Benchmark for Efficient Drug Pricing (GLOBE) Model, 2026-10-02 - [2026-20131](https://policyrisk.com/federal-register/2026-20131): Medicare Program; Inpatient Rehabilitation Facility Prospective Payment System for Federal Fiscal Year 2027 and Updates to the IRF Quality…, 2026-10-01 - [2026-19959](https://policyrisk.com/federal-register/2026-19959): Medicare Program; Prospective Payment System and Consolidated Billing for Skilled Nursing Facilities; Updates to the Quality Reporting Prog…, 2026-09-30 - [2026-20067](https://policyrisk.com/federal-register/2026-20067): Medicare Program; FY 2027 Hospice Wage Index and Payment Rate Update and Hospice Quality Reporting Program Requirements; Correction, 2026-09-30 - [2026-19946](https://policyrisk.com/federal-register/2026-19946): Medicare Program; Hospital Inpatient Prospective Payment Systems for Acute Care Hospitals (IPPS) and the Long-Term Care Hospital Prospectiv…, 2026-09-29 ## Sources - [2025-24272 on federalregister.gov](https://www.federalregister.gov/documents/2026/01/05/2025-24272/restoring-flexibility-in-the-child-care-and-development-fund-ccdf) - [2025-24272 as published (PDF)](https://www.govinfo.gov/content/pkg/FR-2026-01-05/pdf/2025-24272.pdf) ## Related - [Previous: 2025-24264, Atlantic Highly Migratory Species; Revisions to Commercial Atlantic Blacknose a…](https://policyrisk.com/federal-register/2025-24264) - [Next: 2026-00021, National Primary Drinking Water Regulation for Perchlorate](https://policyrisk.com/federal-register/2026-00021) - [All Federal Register documents](https://policyrisk.com/federal-register) Source: PRIA, https://policyrisk.com/federal-register/2025-24272 (as of 2026-06-08).